What type of agency is created when one party acts on behalf of another with their consent?

The correct answer is express agency, which is established when one party explicitly allows another party to act on their behalf. This type of agency involves clear and direct communication or a formal agreement where the principal grants authority to the agent. The consent from the principal can be oral or written, but it must be clear that the agent is authorized to make decisions or take actions that bind the principal.

In express agency, the relationship and duties of both parties are well-defined, leading to a clearer understanding of the expectations and responsibilities involved. This contrasts with implied agency, where consent is inferred from actions or circumstances rather than directly stated; negligent agency (which is not a standard term in agency law) would imply a lack of care on the part of the agent, and dual agency refers to a situation where an agent represents both the buyer and seller in a transaction, which inherently complicates the consent aspect.